Profit taking

TAKE PROFITS - be patriotic - take profits - pay tax and be happy before millions, billions, and trillions sitting duck profit evaporates.

$COMPX 2469.84 -43.98 -1.75% 2,224,728
$INDU 11023.50 -178.47 -1.59% 1,369,314
$INX 1178.34 -19.41 -1.62%

Markets are at IT CIT. Comparative to aforementioned IT CIT, USD bounced off from IT major support area 76. We could see a major breakout above 82-88-90.

No one would be dreaming of doing so.

Mutual Fund FYE 10/30/09

$COMPX 2045.11 -52.44 -2.50% 2,639,692
$INDU 9712.73 -249.85 -2.51% 1,567,426
$INX 1036.18 -29.93 -2.81%



Seeing how markets have performed during the FY and YTD, it is evident that the capitalist deception worked quite well as it has been bankrupting millions and nations around the world. The charm of the capitalist is "Deception" obviously as it was in Genesis 3.

Those who have perfect control of the markets such as the FED would have made astronomical fortunes repeatedly, and those who are lucky enough to time the markets well have gained decent returns, obviously. Nevertheless, as more and longer dances at the beat of markets will be slaughtered by the market manipulators like beaten by dancing snakes. How else 1% would have stolen 98% of global wealth.

As noted before, Christianity is used by Capitalists to deceive and to exploit as evidenced by millions of bankruptcies and bankrupted nations; and now it looks to be Muslim faith is being used to exploit naive, simple, and ignorant market players around the world.

The market hype as shown below is at the expense of billions and trillion literally stolen from the Treasury, and only ignorance would be continuing to be fooled into the deceptive capitalists manipulation; nevertheless, as long as living in this world, many will be bitten by mammon, the snake satan as in Genesis 3.

Reference: http://trend-signals.blogspot.com/2009/10/market-manipulation.html

Is this a Madoff sick joke - in fact, those who have discerning mind would know that the Madoff case was intentionally ignored as we heard that his case was finally reveal during the last few months into the Bush era in 2008. Of course, they knew, but ignored. Only God knows all the truth.

• • Madoff Interview: It's 'Amazing' I Didn't Get Caught Sooner

    Bernie Madoff said it was "amazing" that he didn't get caught sooner in his multi-billion-dollar Ponzi scheme, and that everything the SEC did to investigate him prior to 2006 was a waste of time, according to an interview he gave to the SEC Inspector General.

  • Why Real Estate May Be Better Investment Than Stocks
    • Commodities Investing: Fab Four
    • How to Play Weak Dollar
  • Citigroup Stock Tanks After Analyst Sees Big Writedown
  • Forget Stocks: More Investors Are Piling Into ETFs
  • CIT Pre-Packaged Bankrupty More Likely With Icahn Deal

  • World's Biggest Oil Reserves

  • Stimulus Jobs Report Looks at Hardest-Hit States
  • GDP Growth in US Was Actually 'Horrible': Dr. Doom
  • Slideshow: Biggest Executive Bonuses of Past Decade
  • New Face of Tech Investing: Time to Adjust Your Portfolio
  • Venezuela Oil Area Suffers After Chavez Takeover
  • Estimates of Allen Stanford Losses May Fall Far Short
  • Galleon Investigation Looks at Silicon Valley 'Leakers'

YTD

1 year

1 month

Profit Taking

$COMPX 2083.00 -33.09 -1.56% 1,579,071
$INDU 9852.24 -29.93 -0.30% 870,106
$INX 1054.00 -9.41 -0.88%

SPX traded to 1047 target, but who would still buy dips. We have high volume trading as taking profit is starting to show, it seems that a beginning of taking profit.

European debt is astonishing.

• • • Sign of Recovery: Employers Are Resuming 401(k) Matches

      Several employers suspended 401 (k) matches to reduce costs during the recession, but a few are beginning to reinstate them. How to Play Falling Dollar Stock Pickers Vs Index Funds Time to Adjust Tech Portfolio

    • New Home Sales Post Surprise Drop; Inventory Also Falls
      • Mortgage Applications Fall
      • Compromise on Tax Credit?
    • Senate Vote On Home-Buyer Tax Credit Unlikely Today
    • Goldman Sachs Cuts Third-Quarter GDP Forecast
    • Madoff Trustee Says Losses Now Total $21.2 Billion
    • Weak Dollar Is Protectionist Barrier: Bill Gross
    • Banks Could Spell Trouble for All Stocks: Chartist
    • GM Touts Progress, Serves Up Details on Latest Refunds
    • Poll: If This Is a Correction, How Far Will Stocks Fall?

    • The World's Biggest Debtor Nations

    • New York Jets Slash 2010 Ticket Prices

Debt, Europe debt, EU Debt

Market Correction

$COMPX 2150.73 -12.74 -0.59% 2,556,394
$INDU 9949.36 -92.14 -0.92% 1,398,943
$INX 1081.40 -9.66 -0.89%

SPX traded to 1101.36 HOD and retrieved closing near the low of the day. Even though Markets look as if "TOP formation" with inverted reversal formation with high volume selling at major pivotal resistances, it is better to be cautious as the theme of the 2009 rally is mainly based on "Short squeeze" without any meaningful correction.

• The W3 corrective wave theory is enticing and is due after long 6-7 month rally; however, based on the previous price pattern, the risk/reward for being in the market is 50/50 as the recent rally has been sharp. aka Bernanke greenshoot.
• Market breadth during the 2009 rally has been narrow compared to 2003 market rally. And market breadth and price action has shown negative divergences for months.
  
• Bearish fundamental factors didn't stop markets continuing to advance, so, blindly following the EW downside forecast can be deadly. Bears need to be cautious as the selling which we have seen could well be another trap.
• "W3" after A-B-C correction sounds reasonable after the incredible 6-7 months rally, nevertheless.
• USD broke 76 support, and now it is trading near at 75 support. The counter part Gold traded to 1072 +/- resistance and trading at 1058 at the moment.
• AAPL is upgraded to 300 which is a bad news for bears, however, if markets start to correct, it will likely fill the gap-up.
• VIX traded to 20, then, closed at 22.22. Would this really be a start of a meaningful correction?
• Markets are near CIT pivots, and if we are indeed in W3, this ride will be "Fast & Furious".
  

Market Analysis and Forecast

http://trend-signals.com/newsletter/2009May05e.pdf

* Markets are continuing to grind up as we have seen still "buying dip" even though markets are very overbought. I listed several reasons for markets would pull back; however, we have seen it materialized yet. As noted before, we do not have a confirmation of breaking the recent uptrend line. It would be great if our lost wealth could be recovered as markets recover.* Who are winning? Those who are sitting on markets doing nothing as markets are continuing to grind up.

* Who are losing? Those who are scared and exited markets at the recent low. Those wh are short. Certainly, lazy holding positions are still winning in the market. ** No confirmation of a trend break yet even though markets closed at Intermediate Resistances after reaching to the progreassive targets of: Qs 35, SPX 908, DOW 8450, and Nasdaq 1750.

Markets are trading at intraday pivots

Markets are trading near at intraday pivots after the pull back today. The high selling volume today is a good sign for bears waiting for a pull back after the recent rally of 30%. SPX 800 +/- is a pivot S/R. Daily momentum is now weakening to signal a meaningful correction of the recent rally.

Major CIT

Major CIT ~ we have a major CIT during this week.

Markets are getting a bounce at intraday supports, but daily uptrend pivots are broken to downside.

Trading volumes are incredible - 2 billion Nasdaq already.

$COMPX 1613.03
$INDU 7873.98
$INX 836.43

DIA 78.69
IWM 45.31
QID 40.82
QLD 30.09
QQQQ 32.15
SMH 19.36
SPY 83.71


$COMPX 1613.03 1616.15 -56.92 -3.40% 2,093,042
$INDU 7873.98 7888.08 -243.25 -2.99% 850,157

Selling Pressure in high trading volumes

Issues NYSE Nasdaq
at mid day

Advancing 204 427
Declining 2,614 2,156
Unchanged 75 85
Total 2,893 2,668

Ratio Advancers
to Decliners 0.08 0.2

$COMPX 1615.95 -57.12 -3.41% 1,617,675
$INDU 7899.63 -231.70 -2.85% 603,330
$INX 840.68 -28.92 -3.33%

Weekly Financial Markets

Markets are trading at pivotal resistances with very overbought condition after six weeks rally as shown on the daily charts: Qs 33.50 upper RST TL, SPX 875 double top formation, DOW 8190 downtrend TL, and Nasdaq 1682 TL. Also, markets are in rising wedge/ED formations which are bearish formations. Markets are overbought on all timeframe showing negative divergences for weeks. After rallying for six weeks with a gain of 30%+ H/L from SPX 666, markets will likely pull back at this point even though market sentiment is extremely bullish; however, since markets are trading with the recent uptrend, until markets are technically showing a pull back, it is better to remain cautious.

Major Market pivots:

Qs	31.50
SPX	850.00
DOW	8,200.00
Nasdaq	1,660.00

Final Count Down 3-4-5?

Markets are trading at critical pivotal prices which could be ST tops and which could be followed by sharp declines to finish off the final decline into mid year. Because of the recent excessive bullish sentiment, it is difficult to pounce the ST top; however, the 3/6/2009 could become one of the well-known false bottom. VIX and CPC formation is getting ready to explode which I think that it is to upside as markets trade down. Markets will soon confirm or negate the scenario since markets are trading near at pivotal S/R. After reviewing all major market charts and formations and considering other factors, we could see unexpected market actions as we have seen during the last couple of weeks. But for this time, we could see market actions to the opposite side.



VIX and VXN breakout to upside?


Pivotal Resistances:
SPX 830 +/-
DOW 7780 +/-
Nasdaq 1555 +/-
Q 31 +/-

The cyclical bull market will come when markets trade to the final target to SPX 555 +/-, DOW 5555 +/-, and Nasdaq 1000 +/- for the bear market which started in October 2007.




$BKX

$BKX 17.75 reversed at the same time as SPX 666.79 on 3/6/2009 and rallied to 31.05 on 3/23/2009 -- 70% rally from the low which is below the 1995 support at 30. $BKX is also trading near at the pivotal resistance 31 +/-. The bearish case for the major markets is to resume the final down move while $BKX is testing near the low 20, a higher low.

During $BKX is testing the low, the targets for major markets are SPX 555 +/-, DOW 5555 +/-, and Nasdaq 1000 +/-.
________________________________________________________________________

The cessation of the recent rally as the ST Top to resume the final down move:

Posted by: *~1Best~* Date: Tuesday, March 24, 2009 10:37:06 AM

Markets are trading at pivotal S/R which could be a start of a strong move to downside which is technically sound after the recent reactive bear market rally of 20% +/- from SPX 666.79 on 3/6/2009 to SPX 823.37 on 3/23/2009. The bearish case is a long squeeze which is the opposite reaction to the recent vicious rally. A bearish case is, rather than resuming the strong bounce since 3/6/2009, resuming the down move during the Q1 earning report as a final down move.

Resistances:
SPX 830 +/-
DOW 7780 +/-
Nasdaq 1555 +/-
Q 31 +/-

The volatility setup could be a contrarian setup which is signaling a strong down-move, but again markets are trading at all important pivotal junctures.


$VIX and $CPC as of 3/23/2009:

$VIX closed at 42.01 while $CPC is at 0.70 which is the 2 year low (CPCI is lower than CPCE which P/C ratio is saying many are buying Index ETFs)



Thou shall not "lie-to-me" :

Investors can't handle the truth
We've adopted a culture of whining and embraced the 'Lie to Me' mindset
By Paul B. Farrell, MarketWatch
Last update: 6:35 p.m. EDT March 23, 2009

Meanwhile, it keeps getting worse. And our leaders know it, know America is trapped in this insidious "lie-to-me" mindset. They know that if they just "lie to me," we'll let them do whatever they want. http://tinyurl.com/c3lhc5

1/20+/- CIT after Market free fall on the Obama Inauguration

Markets sold off 5-6% with RBS excuse to exploit quick short profit during the OE week. We often see higher volatility during OE week as the higher volatility provides higher profit opportunity with higher vega.

After markets selling off, markets closed noted pivotal supports: DOW 8000, SPX 817, Nasdaq 1455, and Qs 28. Today is the first day closing below the pivotal supports and a confirmation of a continuation to downside is yet to be seen as the market action could be seen a false break if markets trade up from the LOD yesterday with inv H&S formations. Markets are bouncing up with good IBM earning report in AH. Intraday/Daily price actions are showing moderate +D with the 1/20 sharp sell-off. If we see sustained positive day going into AAPL/GOOG/MSFT earning reports with positive reaction after the earning reports, we have a hope to upside as we are in a pivotal market turn as 1/20 +/-. God bless, 1Best

6/6/2008 +/- Cycle Pivot CIT

OEPM charts ~ DIA/SPY trading below the OE pivots and Qs closed at the pivot, 50.01





6/6/2008 +/- cycle pivot (CIT): Weekly pivots near the recent high. SPX 1400 near 1425 R pivot.